It is well known that music, video games, movies, software, photographs, art work and any other information capable of being stored in a digital format (referred to herein as “digital media”) may be stored in the form of compact disks, digital video discs, computer and portable memory components, etc. for commercial distribution. The vast majority of commercial distribution of such digital media is through traditional streams of commerce from owners or sources of the digital media through transportation to a plurality of retail stores where end-user purchasers survey a variety of digital media offerings at the retail stores prior to making a purchase decision to obtain a copy of the digital media.
Alternative and approximately parallel streams of commerce provide for catalogue shopping by end-users wherein an intermediate entity obtains and stores or “drop-ships” copies of digital media from the media source, and direct mails the copies to on-line or mail catalogue end-user purchasers. More modern methods of commercial distribution involve storage of digital media within shopping mall “kiosks” or within coffee house outlets for creation of copies of the media, such as by “burning” a compact disk containing the media, at a request of an end-user. For example, recently a distribution system known as “VMS” permits end-user purchasers within a retail store to scroll through a computer-based, menu-driven catalog for selection of a specific copy of digital media, and upon selection a compact disk burner within the retail store burns a copy of the selected digital media copy.
However, the conventional model of distribution from the media source to retail stores for physical display and comparative appreciation by end-users at modern shopping mall complexes remains the avenue for commercial distribution of the overwhelming majority of digital media copies. This is apparently because end-users enjoy the retail shopping experience involving an impact of visual advertising elements along with the social interchange common to selection and purchase of digital media copies amongst one's peers.
Unfortunately, all of the known systems for commercial distribution of copies of digital media suffer from major cost and security inefficiencies. For example, a manager or controller of a retail outlet must order a specific number of copies of a particular digital media (known as a “stock keeping unit” or “SKU”) in anticipation of a release of such an SKU. At the same time, the retail store controller must order specific numbers of a wide variety of competing SKUs on a regular basis to replenish supplies, based upon inventory sales, etc. The particular numbers of various SKUs that must be ordered depends upon multiple factors, including the anticipated sales of the digital media, whether it is a popular music SKU, a movie, video game, software, etc., as well as upon the regional and national economic climate, the time of year with respect to gift purchasing factors, etc. Even the modern “kiosk”, computer menu-driven selection systems fail to provide for any retailer control of inventory.
The inevitable result of so many uncertainties is that the retail store invariably ends up with many SKUs that simply cannot be sold, along with, in some cases, returned SKUs from end-users, as is well known. These unsold and returned SKUs must be returned to the media source or owner. That involves regular re-packaging of the unsold and returned SKUs and transport of the many copies of the digital media back to the media source, with the attendant time consuming problems of physical and monetary accounting for the unsold SKUs between the media source and the retail store. The accounting for and return of unsold SKUs presents significant security risks in potential theft of or accounting errors regarding the unsold and returned SKUs. Additionally, while the unsold SKU's are resident at the retail store, the store loses valuable storage space that could otherwise be productively utilized. The returned SKUs also pose significant cost challenges to the media source, that typically repackages the SKUs for distribution to higher sales retail outlets, or for discounted sales under different marketing efforts, etc.
It has been estimated that returning SKUs accounts for in excess of eighteen-percent of total costs for manufacture and distribution of digital media copies. Additionally, conventional systems for commercial distribution of digital media require frequent, time consuming, costly estimates of numbers of various SKUs of digital media to order and store in retail stores. Also, known catalogue and electronic distribution systems require similar sales controllers to make estimates of numbers of digital media SKUs for ordering, storage, and marketing to potential consumers. Moreover, none of the existing commercial distribution systems provide for meaningful security against unauthorized commercial copying of digital media.
Accordingly, there is a need for a digital media commercial distribution system that enables a retail store to control availability of digital media SKUs based primarily upon an in-store consumer-influenced demand, and that eliminates physical return of digital media copies by the retailer to the media source.